I was at the closing table for my condo purchase only to discover that there was a penalty for early payoff. I called the bank immediately and they told me to "take it or leave it."

A great idea came immediately in my mind, and I went through with the closing. Soon, I received the money I expected and wanted to pay off the mortgage. The bank explained to me that a percentage of the payoff amount is calculated as a penalty. I sent them a payment for $5 less than the payoff amount.

After I made sure that my payment went through, I requested the payoff amount and the penalty. The penalty was of course calculated on the remaining amount of $5.